Tuesday, October 11, 2011

Learn Compound Interest Principles

One of the most important investment tools are compound interest principles. Therefore, keep a simple interest and compound interest table handy. You will be surprised how many practical math solutions you will get when you figure which investments are best for you.

Remember also the Rule of 72. It’s a handy, quick, approximate tool that requires no tables. For example; For 6% interest, 6 multiplied by 12 ( to get 72) means it takes twelve years to double your money. Or, for 3% interest, 3 multiplied by 24 means it takes twenty four years ( to get 72) to double your money. At only 1% interest it would take about 72 years to double your money. (See the Earl J Weinreb NewsHole® comments for more about your money.)

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